The profits of industrial enterprises above designated size achieved rapid growth in January and February

The profits of industrial enterprises have grown rapidly, and the growth of operating income has accelerated. In January and February, the profits of industrial enterprises above designated size in China increased by 15.2% year-on-year, with a growth rate 14.6 percentage points faster than the previous year. From the perspective of gross profit calculated by deducting operating costs from operating income, the gross profit of industrial enterprises above designated size increased by 6.9% year-on-year from January to February, and remained unchanged for the whole year of the previous year, which strongly supports the rapid growth of profits of industrial enterprises above designated size. From the perspective of the three major categories, in January and February, the manufacturing industry grew by 18.9%, an increase of 13.9 percentage points compared to the whole year of the previous year; The mining industry grew by 9.9%, compared to a 26.2% decrease for the entire year of the previous year; The production and supply of electricity, heat, gas, and water increased by 3.7%. Driven by factors such as accelerated production and rising product prices, the operating income of industrial enterprises above designated size increased by 5.3% year-on-year in January and February, which was 4.2 percentage points faster than the previous year. The growth of operating income has significantly improved, creating favorable conditions for the recovery of enterprise profits.

Most industries have achieved profit growth, with over 60% of industries rebounding. In January and February, among 41 major industrial sectors, 24 industries saw a year-on-year increase in profits, with a growth rate of 58.5%; The profit growth of 26 industries has accelerated or narrowed compared to the whole year last year, with a rebound rate of over 60%.

The role of "ballast stone" in the equipment manufacturing industry is significant, and the profit structure of industrial enterprises continues to optimize. In January and February, the operating revenue of equipment manufacturing industry above designated size increased by 8.9% year-on-year, which is 3.6 percentage points higher than all industrial enterprises above designated size. The rapid growth of operating revenue has driven a year-on-year increase of 23.5% in profits for the equipment manufacturing industry above designated size, accelerating by 15.8 percentage points compared to the entire previous year; The profit of equipment manufacturing industry above designated size accounts for 30.4% of all industrial enterprises above designated size, an increase of 2.0 percentage points year-on-year, and the profit structure continues to optimize. From an industry perspective, 5 out of 8 industries in equipment manufacturing have achieved profit growth. Among them, the electronics, railway, shipbuilding, aerospace, and electrical machinery industries have seen rapid profit growth, with year-on-year increases of 203.5%, 11.4%, and 6.2%, respectively.

The rapid growth of profits in high-tech manufacturing industry has strengthened its leading role. In January and February, the profits of high-tech manufacturing industries above designated size increased by 58.7% year-on-year, accelerating by 45.4 percentage points compared to the whole year of the previous year; Pulling the profits of all industrial enterprises above designated size to increase by 7.9 percentage points, the driving effect increased by 5.5 percentage points compared to the whole year of the previous year. From an industry perspective, the development of intelligent product manufacturing is improving, with profits from the manufacturing of intelligent unmanned aerial vehicles, intelligent vehicle mounted equipment, and other intelligent consumer devices increasing by 59.3%, 50.0%, and 31.3%, respectively; The rapid development of the semiconductor industry has driven rapid profit growth in the chain industry, with profits in the semiconductor discrete device manufacturing, optoelectronic device manufacturing, and electronic circuit manufacturing industries increasing by 130.5%, 56.1%, and 19.5%, respectively.

The new driving force has a significant impact on the profits of the related raw material manufacturing industry. In January and February, driven by the rapid development of new energy related industries and increasing demand, the profit of raw material manufacturing industry above designated size increased by 88.3% year-on-year, accelerating by 71.1 percentage points compared to the whole year of last year. From an industry perspective, the profit of the non-ferrous industry increased by 148.2%, with aluminum rolling processing, non-ferrous metal alloy manufacturing, and copper rolling processing industries experiencing profit growth of 264.0%, 205.1%, and 50.8%, respectively; The profit of the chemical industry increased by 35.9%, with inorganic salt manufacturing, inorganic acid manufacturing, organic fertilizer, and microbial fertilizer manufacturing industries experiencing profit growth of 518.5%, 306.3%, and 38.5%, respectively.

The unit cost of industrial enterprises has decreased, and the profit margin has increased. In January and February, the cost per 100 yuan of operating income for industrial enterprises above designated size was 84.83 yuan, a year-on-year decrease of 0.24 yuan. The cumulative cost of industrial enterprises decreased for the first time since 2022; The operating revenue profit margin was 4.92%, an increase of 0.43 percentage points year-on-year.

The profits of enterprises of different scales have improved, and the profit growth rate of private enterprises has rebounded. Looking at the scale, from January to February, the profits of medium-sized industrial enterprises above designated size increased by 31.5% year-on-year, accelerating by 27.3 percentage points compared to the whole year of the previous year; The profits of large and small enterprises increased by 8.7% and 17.1% respectively from a decrease of 0.2% and 0.8% in the previous year. Looking at the types of enterprises, the profits of state-owned holding enterprises increased by 5.3% year-on-year, compared to a decrease of 3.9% for the whole year of the previous year; The profit of private enterprises increased by 37.2%, remaining unchanged for the whole year of the previous year.

Overall, the profit growth of industrial enterprises above designated size is relatively fast. However, it should also be noted that the international environment is volatile, external risks, especially geopolitical conflicts, are increasing, and there are many unstable and uncertain factors. At the same time, the profit recovery of domestic industry enterprises during the economic transformation period is still uneven. In the next stage, we must thoroughly implement the spirit of the Central Economic Work Conference and the deployment of the National People's Congress and the Chinese People's Political Consultative Conference, continuously expand domestic demand, optimize supply, develop new quality productive forces according to local conditions, deepen the construction of a unified national market, and promote the sustained and healthy development of the industrial economy.